Crypto News Bulletinfrom bitcoinmagazine

Wednesday May 15, 2019 3:51 PM1 week 2 days ago

Tether and Bitfinex Ask New York Attorney General for Fund Accessibility

Attorneys for Tether and Bitfinex are hoping to get the former access to its reserves amid a legal dispute with New York Office of the Attorney General (NYOAG).In a letter sent to the New York County Supreme Court, attorneys representing iFinex (the parent organization of Bitfinex) and Tether took issue with the restrictions that had been placed on Tether's transactions with related parties as part of an ongoing case against them, stating that the NYOAG had no basis for disallowing tether (USDT) holders and other affiliated entities from redeeming their tokens.The development brings yet another twist to the ongoing dispute between the parties. In April 2019, the NYOAG applied for a court order to investigate Bitfinex for “ongoing fraud” totaling $850 million, using funds from Tether to mask massive losses. As part of the case, the NYOAG had filed an injunction seeking a restriction on related parties from accessing any of their funds in Tether's reserve for at least 90 days.The NYOAG’s argument is simple; if Bitfinex is allowed to continue drawing funds from Tether, with no assurance of repayment, then there’s a significant possibility that these funds will never be recovered.On the other hand, Bitfinex maintains that the NYOAG has no legal basis or authority to probe its business.In this recent letter sent to the court, iFinex's attorneys noted that the two sides have been unable to reach a consensus on what ...